Question
Kindly solve this question carefully. Thank you Qno1 (A) I deposited Rs 3 Million of my money in habib bank limited, state Bank of Pakistan:
Kindly solve this question carefully.
Thank you
Qno1 (A)
I deposited Rs 3 Million of my money in habib bank limited, state Bank of Pakistan: required rate of reserve ratio (RRR). Weekly Average demand liability was set as 100% in june 2020. You are required to calculate the change in money supply in the economy. If RRR decreased to 5% in August 2020. What will happen with the same deposit of Rs 3 Million. You are also required to compare and discuss it in few line approximately 150 to 200 words
Qno1 (B)
Evalute the policy open to a government when the government wants to close a deflationary gap ( negative output gap) and reduce unemployment. Kindly try describe it in approximately 200 words
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